What Happened?

A number of stocks jumped in the afternoon session after software stocks rebounded as the market shook off growing uncertainty amid escalating tension in the Middle East. 

This previous sell-off, nicknamed the "SaaSpocalypse," was driven by investor fears that new artificial intelligence agents could disrupt and threaten the business models of enterprise software companies. The rally suggests investors are shifting from blind fear to a more nuanced view as they monitor the market for "AI Winners.".

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Vulnerability Management company Qualys (NASDAQ: QLYS) jumped 3.9%. Is now the time to buy Qualys? Access our full analysis report here, it’s free.
• Data Analytics company Amplitude (NASDAQ: AMPL) jumped 3.6%. Is now the time to buy Amplitude? Access our full analysis report here, it’s free.
• Data Analytics company Domo (NASDAQ: DOMO) jumped 8.9%. Is now the time to buy Domo? Access our full analysis report here, it’s free.
• E-commerce Software company Wix (NASDAQ: WIX) jumped 4.8%. Is now the time to buy Wix? Access our full analysis report here, it’s free.
• Advertising Software company LiveRamp (NYSE: RAMP) jumped 3.7%. Is now the time to buy LiveRamp? Access our full analysis report here, it’s free.

Zooming In On Domo (DOMO)

Domo’s shares are extremely volatile and have had 56 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock gained 8.3% on the news that Nvidia CEO Jensen Huang dismissed fears that artificial intelligence would cannibalize the enterprise software sector. 

High-growth names like Zscaler (ZS) and CrowdStrike (CRWD) saw significant rebounds as investors reassessed the "AI headwind" narrative that had previously weighed on valuations. Huang's comments acted as a powerful catalyst, signaling that the intersection of generative AI and established software platforms is a symbiotic relationship rather than a zero-sum game. During a CNBC appearance, Huang argued that the market "got it wrong," specifically defending the indispensable role of platforms like ServiceNow. He emphasized that these companies are uniquely positioned to deploy fine-tuned AI agents that utilize their existing specialized tools.

Domo is down 53.3% since the beginning of the year, and at $3.88 per share, it is trading 78.7% below its 52-week high of $18.20 from September 2025. Investors who bought $1,000 worth of Domo’s shares 5 years ago would now be looking at an investment worth $59.54.

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